#ChristmasMarketAnalysis History doesn't repeat itself, but it does rhyme.

Christmas is coming, and the New Year of 2025 is approaching. Christmas, New Year, Trump's inauguration, Bitcoin's half-year reduction... With these buffs, Bitcoin may be expected to end the adjustment and return to the upward track again.

Christmas is coming, is the crypto market correction over?

The Federal Reserve announced a rate cut last week and lowered the possibility of further rate cuts, leading to a global market collapse. Bitcoin fell from its historical high of 108,000 to around 90,000 US dollars in just a few days. Altcoin were in a bloodbath, and some tokens lost all their gains during the bull market.

Matt Hougan, chief investment officer at Bitwise Asset Management, attributed the recent crypto market pullback to a “natural unwinding of leverage,” and stressed that “the long-term drivers remain intact and we are still in a strong bull market.”

This pullback caused a large-scale liquidation and reduced market leverage. At the same time, Christmas will come this week, and the global market may usher in a "Christmas rally". The "Christmas rally" refers to the last five trading days of the year and the first two trading days of the New Year. Historically, the US stock market has a positive trend in these seven days. Bitcoin is currently greatly affected by the trend of US stocks and gold. If the stock market is doing well, this may drive the sentiment of the crypto market up.

Historically, Bitcoin has often surged during and after the “half-year” Christmas season, such as in 2016 and 2020. This increases expectations that Bitcoin will surge in the short term.

$BTC The “crypto winter” of 2021 and 2022 now seems a distant memory. That was a major crisis for cryptocurrencies, and one in which the bitcoin price slumped below $20,000, losing 75% over 12 months.

Such a turnaround is impressive, but the history of bitcoin is one of extreme highs and lows, says John Plassard, senior investment specialist at Mirabaud Group: “Bitcoin’s unprecedented rise reflects a blend of increased legitimacy and growing demand, but history suggests caution as bitcoin’s price trajectory has been marked by sharp corrections following periods of exponential growth.”

Cryptocurrencies are known for their high volatility. Prices can fluctuate significantly in short periods, induced by factors such as market sentiment and risk appetite, regulatory news, technological developments, and macroeconomic trends.

#ChristmasMarketAnalysis Historically, Bitcoin has shown mixed behavior during the holiday season. While some years have seen a "Santa rally" with increased buying activity, others have experienced declines. With Christmas Eve tomorrow, it's worth considering the potential impact of holiday trading on Bitcoin's price. Reduced trading volume and increased volatility are possible, so traders should exercise caution and be prepared for unexpected price swings.

By understanding these key levels, employing sound technical analysis principles, and considering the potential impact of the holiday season, Bitcoin futures traders can gain a significant edge in this volatile market. Remember to manage your risk and trade responsibly.. Always trade bitcoin at your own risk only.